Simon Kuznets's research in his National Income and Its Composition showed that
a. Keynes's absolute income hypothesis is empirically correct
b. budget deficits crowd out consumption spending
c. a nation's MPC tends to remain fairly constant regardless of the absolute level of national income
d. as national income increases, consumption spending increases, but by diminishing amounts
e. consumption and income cannot be linked in any meaningful fashion
C
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What did NOT cause the 2008-2009 recession?
A. Decrease in AD B. Housing bubble burst C. Large banks and corporations shut down D. Improper fiscal policy E. Stock market and wealth decrease
GNP and GDP are important economic variables, because of their close association to:
a. Economic well-being and the exchange rate. b. Real interest rates and the nominal exchange rate. c. Nominal and real interest rates. d. Nominal interest rates and real exchange rates. e. Economic well-being and unemployment.